Property Price Expectations Remain Near Highs
Home price expectations for rental and ownership properties in Fannie Mae’s monthly national housing survey remained near their strongest-ever levels.
Notably, 50% of those surveyed expect rental prices will rise in the next 12 months, the highest level since the survey began two and a half years ago and a slight increase from December.
The percentage of respondents who expect home prices will rise in the next 12 months was 41%, remaining near December’s survey high. Also those who believe home prices will fall returned to the survey low of 10%.
The percentage of respondents who think it is a good time to sell still represents a minority in the market, but at 23% it is more than double the 11% recorded a year ago.
Doug Duncan, Fannie Mae senior vice president and chief economist, said in a press release that the upward trend in the share of consumers who believe it is a good time to sell may reflect perceived improvements in home prices.
He said it also may reflect a decline in the number of homeowners who have underwater loans that are larger than the current value of their properties, “reducing a barrier for those owners who need to sell their home in order to buy a new one.”
The extent of the home price expectation change and the percentage of those who believe interest rates will go up were slightly lower in the most recent survey at 2.4% and 41%, respectively.